Ensign Resource Service Group (ESI.TO) Buy,…

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Ensign Resource Service Group (ESI.TO)

3.50

+0.08 (2.34%)

as of Aug 6, 2026, 8:00:01 pm Market Open.

139 watching

Investor Insights

Aug 6, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Ensign Resource Service Group (ESI-T) has been viewed by experts as an undervalued company that has not performed to the expectations of its potential. Despite a recent rally of 30%, analysts from BMO point out that there are better investment opportunities in the oil services sector. Paying down a significant amount of its $600 million debt is crucial for the company's future, as it is expected to reflect positively on the company's stock value. Experts note that Ensign has halved its debt, yet its market capitalization has remained stagnant since before the pandemic. As the company continues to reduce its debt, experts believe that its true value will eventually be recognized in the market.

Consensus

Neutral

Valuation

Undervalued

Similar

CrescentPoint, CPG

HOLD

Stock has completely collapsed. Rebounded a bit and may continue if oil prices goes up. Hypercheap stocks like this are a bit of a gamble. If you've already taken a big loss, hang in and see what happens.

TOP PICK

Natural gas prices are stronger and drilling activity is picking up now. It is at the same price as 6 months ago.

DON'T BUY

Won't buy it. The oil sector is in severe distress. No pricing power now in oil. Oil is oversupplied. Nobody is drilling in the west or even Texas. This is a trader's stock, at best. Steer clear. Don't even short it.

DON'T BUY

On March 31, they reported that debt rose--109% debt-to-equity. A big problem: there's little activity in oil drilling and likely won't pick up until Q4. So, no reason to go after this stock. Nice bounce since the March low, but the next few quarterly reports will be horrible and their balance sheet is a problem. ESI needs higher oil prices, which he expects in Q4 at the earliest.

BUY ON WEAKNESS

Despite being up 100% over the last few weeks, it is not back to where it was in January, so there is more upside. The book value also suggests upside. You could buy some today or wait for a pullback.

TOP PICK

There's been serious insider buying recently, something he always likes in stocks, $2 million worth. They do carry a lot of debt which concerns the market and is pressuring the stock. One third of operations are in drilling for natural gas, less than 20% is in troubled Canadian oil, and has operations in the U.S., Australia, Argentina, Iran and Kuwait. They have positive cash flow. ESI can hold their prices with more discipline than the rest of the oil/gas industry. (Analysts’ price target is $0.71)

DON'T BUY

It is paying a 17+% dividend because it used to be double the valuation. Don't expect that dividend rate to remain. He suspects it will be cut.

DON'T BUY

It has an outrageous dividend. They are cheap on a price to cash flow basis and trades at .27 times book value. He would not own it and worries the dividend may not be sustainable. Yield 18%

WAIT

$0.62 is his target price. Little good news here. The dividend should be cut and write-offs need to happen. Wait till their November earnings before pulling the trigger.

DON'T BUY

The only one he likes in this sector is Secure Energy Services. Companies are trying to figure out their activity levels and this will determine how equipment will move between Canada and the US. This is one he would not be buying right now.

DON'T BUY

It has a decent balance sheet but some operations are in difficult places. It is a high beta stock and will do well when the cycle turns. The company has some assets that are going to under-perform for some time to come. There are more attractive names.

COMMENT

This stock compares to Trinidad Drilling (TDG-T) and both are on his coverage list. He likes what he sees out of Ensign. It has $740 million debt versus $1.7 billion of equity. Their book value is $10.77 and the stock trades at $6. They have a very big presence in the United States. Of $1 billion in 2017 revenue, $459 billion came from the US, $262 from Canada and the rest international. They’re in the Middle East and in Mexico and Venezuela. Venezuela adds some risk to the stock. He is hoping to add coverage on weakness.

BUY ON WEAKNESS

He likes the company. Book value is $10.77, he thinks the downside is $5. It traded around $14 to $15 in the last bull market for energy, so he sees the potential for a triple, but it is a stock that requires patience. There is potential for a 10 to 15% downside in the Q2 weakness.

PAST TOP PICK

(A Top Pick Jan 6 /17, Down 29.59%) When you buy cyclical, you need to be prepared when it goes the wrong way. This is still a world class company. They have done a lot of innovation through the years, return on capital has been very consistent for many years, and of course the last few years haven’t been great. The services companies are really tough, they are the first ones to get cut, and then when things starts to get better they are the last ones to go up. Energy didn’t quite have as good a year as they thought and services got left behind.

HOLD

The 2^nd largest driller in Canada with significant international drilling operations as well. This is a derivative play on the energy sector. Unlike some of the other service companies, it has not performed that well from a stock perspective.

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Ensign Resource Service Group (ESI.TO)